On December 31, 2024, Sage Hill Corporation signed a 6-year, non-cancelable lease for a machine. The terms of the lease called for Sage Hill to make annual payments of $12,096 at the beginning of each year, starting December 31, 2024. The machine has an estimated useful life of 8 years and a $5,800 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Sage Hill uses the straight-line method of depreciation for all of its plant assets. Sage Hill's incremental borrowing rate is 9%, and the lessor's implicit rate is unknown. Click here to view factor tables. (a) Your answer has been saved. See score details after the due date. What type of lease is this for the lessee? Compute the present value of the lease payments. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places e g. 5,275.) Present value of the lease payments